Business

Chanel, Prada and other luxury brands suspend operations in Russia

Chanel, Prada and other luxury brands suspend operations in Russia

As Vladimir Putin’s war on Ukraine continues, global companies, including major fashion brands and retailers, are responding by suspending or eliminating business in Russia.

Haute couture brands Chanel, Louis Vuitton, Gucci, Hermès, Prada and Burberry have all announced that they are temporarily ceasing operations in Russia.

Prada shared the announcement yesterday on its LinkedIn. “As of today, Prada Group is suspending its retail operations in Russia. Our primary concern is for all colleagues and their families affected by the tragedy in Ukraine, and we will continue to support them,” the statement said. communicated.

Chanel also said on LinkedIn that it is closing its boutiques in Russia for the time being and has already halted deliveries to the country and suspended e-commerce.

Hermès wrote in a statement on LinkedIn: “Deeply concerned about the situation in Europe at the moment, it is with regret that we have taken the decision to temporarily close our stores in Russia and suspend all our commercial activities from 4 March evening. continue to support our local teams.”

Kering, owner of Gucci, said it was temporarily closing its stores in Russia “for its Maisons that the Group operates directly in the country”. Gucci has 13 stores in Russia, according to its website.

A Burberry spokesperson said Bloomberg that the brand has stopped shipping to Russia until further notice due to “operational challenges”. Its two stores and a dealership in the country were not closed.

LVMH, owner of Louis Vuitton, said it would close its more than 120 stores in Russia starting yesterday, a spokesperson said. The New York Timesadding that it will continue to pay its 3,500 employees in the country.

Richemont also announced that it has suspended its business activities in Russia and temporarily halted its operations in Ukraine for security reasons. The company owns luxury brands Azzedine Alaïa, Cartier, Chloé, Jaeger-LeCoultre, Montblanc, Piaget, Vacheron Constantin and Van Cleef & Arpels, among others. On LinkedIn, Richemont said he made a significant donation to Médecins Sans Frontières (MSF) to help provide emergency response activities, basic aid items, medical supplies and support to the people of Ukraine.

Luxury online retailers Net-a-Porter and Farfetch have also suspended deliveries to Russia, according to WSJ. The news comes later Bloombergreports last week that wealthy Russians were buying designer jewelry and watches in a bid to preserve their money’s worth amid the ruble’s decline due to Western sanctions.

Sportswear giants Adidas, Nike and Puma have also taken action. Adidas suspended its partnership with the Russian Football Union, Nike stopped online sales in Russia and closed its stores in the country, and Puma stopped all deliveries to Russia, Reuters reported. The news came after FIFA and UEFA announcement that they have suspended Russian clubs and national teams from all competitions “until further notice”.

Under Armor also halted all shipments to Russia and went further by expressing support for Ukraine in a statement released on instagram the 3 of March.

“Like the rest of the world, we are shocked and saddened by Russia’s unprovoked attack on Ukraine. At Under Armour, one of our values ​​is Stand up for equality. We believe in the power of democracy, the ultimate team sport,” the brand said. “We are partnering with humanitarian groups to provide what is needed for displaced people and have also stopped all shipments to our sales channels in Russia. We are proud to stand with Ukraine against Russia’s attack on its democracy and we will do what we can as a global company where stand up for equality Questions.”

The H&M group also condemned the Russian attack, saying he is “deeply concerned about the tragic developments in Ukraine and stands with all who are suffering.” The company temporarily closed its stores in Ukraine for the safety of customers and colleagues, and announced on March 2 that it would temporarily suspend all sales in Russia. The decision is significant, as Russia is the company’s sixth-largest market, according to the BBC.

Retailers ASOS and Boohoo have also suspended sales in Russia, per Reuters. “Against the backdrop of the continuing war, ASOS has decided that it is neither practical nor fair to continue to do business in Russia,” an ASOS spokesperson told the outlet.

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